pme(lec 02)

11/12/2012 Indian Institute of Information Technology, Allahabad 1

PresentedBy

MONARK BAGLecturer

Indian Institute of Information Technology, Allahabad

Focus on relationships Interpersonal Roles: Figurehead – In this role manager performs duties of

ceremonial nature such as taking an important client for dinner or greeting visitor , signing legal documents.

Leader – responsible for creating an environment that will motivate the subordinate. Builds goods relationship with subordinate, coaches them.

Liaison – responsible for dealing with people both inside & outside the organization. The manager should cultivate outside his vertical chain of command to collect information relevant to his organization.


Focus on communication Informational Roles: Monitor – searches for internal and external information

to become more effective . Reading periodicals and reports; maintaining personal contact.

Disseminator – transmits information to subordinates. Holding informational meeting; making phone call to relay information.

Spokesperson – transmits information to people inside & outside the organization or unit. Holding board meetings, giving information to the media.

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Focus on unit strategy Decisional Roles: Entrepreneur – voluntary initiator of change. The manager is

always on a look out for new ideas and tries to improve his unit continually by adopting strategies to cope the ever changing environment.

Disturbance handler – responds to situations that are beyond his or her control.

Resource allocator – decides how and to whom the organization’s resources will be distributed

Negotiator – participates in a process of give and take until a satisfactory compromise is reached



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Learning Goals

1. Describe the three branches of the traditional viewpoint of management:

2. Explain the behavioral viewpoint’s contribution to management

Bureaucratic, Scientific, andAdministrative


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Learning Goals (cont’d)

3. Describe how managers can use systems and quantitative techniques to improve employee performance

4. State the two major components of thecontingency viewpoint

5. Explain the impact of the need for quality on management practices


Goals:Efficiency

Consistency

Administrative Management

Bureaucratic Management

ScientificManagement


Traditional ViewpointTraditional Viewpoint

Behavioral ViewpointBehavioral Viewpoint

Systems ViewpointSystems Viewpoint

Contingency ViewpointContingency Viewpoint

Quality ViewpointQuality Viewpoint

19001900 19101910 19201920 19301930 19401940 19501950 19601960 19701970 19801980 19901990



Max Weber


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Use of rules, hierarchy, a clear division of labor, and detailed procedures to guide employees’ behaviors Seven characteristics

Rules—formal guidelines for the behavior of employees on the job

Impersonality—employees are evaluated according to rules and objective data

Division of Labor—splitting work into specialized positions


Hierarchical Structure—ranks jobs according to the amount of authority in each job

Authority—who has the right to make decisions of varying importance at different organizational levels

Traditional authorityCharismatic authorityRational, legal authority

Lifelong Career Commitment—both the employee and the organization view themselves committed to each other over the working life of the employee

Rationality—the use of the most efficient means available to accomplish a goal


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“Each job has a policy manual detailing the rules that a person needs to follow to ensure efficiency. Drivers are told to walk to a customer’s door at a brisk pace of 3 feet per second, carrying the package in the right hand and clipboard in the left. They should knock on the door so as not to lose valuable seconds searching for a doorbell.”

Snapshot


LOW MIDRANGE HIGH

DreamWorks Sony IRS

R&D Thinktank 7-11 McDonalds

MP3 PepsiCo State MotorVehicle

Registration

Bureaucratic Continuum

Large amounts of standard information have to be processed The needs of the customer are known and are unlikely to change The technology is routine and stable (e.g., mass production) The organization has to coordinate the activities of employees in

order to deliver a standardized service/product to the customer


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Potential Benefits of Bureaucracy

Efficiency Consistency Functions best when routine tasks are performed Performance based on objective criteria Most effective when


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Rigid rulesand

red tape

Protection of authority Slow decision making

Incompatible withchanging

technologyIncompatible with

21st century workers’ values for freedom and

participative management


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Scientific Management

Frederick W. Taylor

The father of Scientific Management – the 1st Efficiency Expert.

A philosophy and set of management practices that are based on fact and observation, not on guesswork



Believed increased productivity depended on finding ways to make workers more efficient

Used time-and-motion studies to analyze work flows, supervisory techniques, and worker fatigue

Used functional foremanship, a division of labor that assigned eight foremen to each work area

Assumed workers motivated by money $$


• He was interested in machines -- apprenticeship in industry: Midvale Steel• Shocked by how inefficient his fellow workers were• timed workers with stopwatches• break down job into parts, make parts efficient• figure out how to hire the right worker for the job • give the worker appropriate training


• introduced incentive pay plans (workers were assumed to be motivated only by money). • Believed would lead to cooperation--management and worker • Studied design of shovels and introduced a better design at Bethlehem Steel Works, reducing the number of people shoveling from 500 to 140



The Gilbreths Frank Gilbreth used motion pictures

to analyze workers’ motions Lillian Gilbreth championed protecting

workers from unsafe working conditions

Henry Gantt Focused on control systems for

production scheduling (Gantt Chart)

Frank and Lillian Gilbreth refined Taylor’s methods and suggested

1. Breaking down each action into individual components.

2. Find better ways to perform the action. 3. Reorganize each action to be more efficient.

Problems associated with Scientific Management Managers often gave attention only to increasing

output They did not allow workers to share in the benefits of

increased output. Specialized jobs became very boring & dull. Workers ended up distrusting Scientific Management


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How to increase worker’s efficiency?“The essential difference between the best system of

today and those of the past are the manner in which the tasks are scheduled, and the manner in

which their performance is rewarded”

Scheduling Innovation Gantt Chart – scheduling summary of work Rewarding Innovation Bonus in addition to the piece rate if they exceeded their daily

production quota On time = Bonus, Good Performance = Reward


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Insights from Scientific Management

Many companies have used scientific management principles to improve efficiency, employee selection and training

Scientific management failed to recognize the social needs of workers and the importance of working conditions and job satisfaction


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“Walgreens is constantly pushing to drive costs down. It pioneered the application of satellite communications and computer technology and linked these to increase store efficiency. By using tried-and-proven management concepts, each of its 6,100 stores [is] able to process around 280 prescriptions a day and beat Wal-Mart by 27 cents and CVS by 94 cents on each prescription.”

Snapshot


Administrative Management: Overview

Focuses on the manager and basic managerial functions of planning, organizing, controlling and leading

Unity of Command Principle: an employee should report to only one manager

Authority Principle: managers have the right to give orders to get things done

Division of Work: allows for job specialization. Work should be divided among individuals and

groups. Authority and Responsibility

Authority right to give orders Responsibility involves being answerableWhoever assumes authority assumes responsibility

Discipline Common efforts of workers. Penalties

Unity of Command Employees should have only one boss.


Unity of Direction A single plan of action to guide the organization.

Subordination of individual interests to the general interests of organization

Remuneration An equitable uniform payment system that motivates

contributes to organizational success. Centralization

The degree to which authority rests at the top of the organization.

Scalar Chain Chainlike authority scale. Most vs. least authority


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Order The arrangement of employees where they will be of

the most value to the organization and to provide career opportunities.

Equity The provision of justice and the fair and impartial

treatment of all employees. Stability of Tenure of Personnel

Long-term employment is important for the development of skills that improve the organization’s performance. Subordination of Individual Interest to the Common Interest

The interest of the organization takes precedence over that of the individual employee.


Initiative The fostering of creativity and innovation by

encouraging employees to act on their own. Esprit de corps

Harmony, general good feeling among employees, shared enthusiasm, foster devotion to the common cause (organization).


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Behavioral Viewpoint: Overview

Focuses on dealing effectively with the human aspects of organizations

Started in the 1930’s

Emphasis on working conditions

Workers wanted respect

Workers formed unions to bargain with management


Mary Parker Follett’s Contributions

Managers need to communicate with

workers Workers should

participate in solving

problems

Managers need to establish good working relationships with employees

Goal:Improve

Coordination


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“Managers need to have a common touch and to be a team leader and not adrill sergeant. When their people shine,

they shine.”

Snapshot


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Studies of how characteristics of the work setting affected worker fatigue and performance at the Hawthorne Works of the Western Electric Company from 1924-1932. Worker productivity was measured at various levels

of light illumination. Researchers found that regardless of whether the

light levels were raised or lowered, worker productivity increased.

The Hawthorne Studies

The Relay Assembly Test Room Experiments

Working conditions and productivity

The Bank Wiring Observation Room Experiment

Analyze the social relationships in a work group


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Employees are motivated by social

needs and association with others

Employees’ performance is more a result of peer

pressure than management’s incentives

and rules

Managers need to involve subordinates in coordinating their

work to improve efficiency

Employees want to participate in decisions

that affect them


Snapshot

“Teamwork is one of the most beautifulexperiences in life. Teamwork is ourcore value and a primary way that theContainer Store enriches the quality

of employees’ work life.”

Kip Tindell, President, The Container Store


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System: an association of interrelated and interdependent parts

Systems viewpoint: an approach to solving problems by diagnosing them within a framework of transformation processes, outputs, and feedback


InputsHuman, physical,

financial, and information

resources

TransformationProcess

OutputsProducts

andservices

Feedback Loops


Mathematical models are used

to simulate changes

Computers are essential

Primary focus is on decision

making

Alternatives are based on

economic criteria


What managers do in practice depends on a given set of circumstances – a situation.

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Management practices should be consistent with the requirements of the external environment, the technology used to make a product or provide a service, and capabilities of the people who work for the organization

Uses concepts of the traditional, behavioral and system viewpoints



External environment—stable or changing

Technology—simple or complex

People—ways they are similar and different from each other



Behavioral ViewpointHow managers influence others; Informal group Cooperation among employees Employee’s social needs

Systems ViewpointHow the parts fit together.

Inputs Transformations Outputs

Traditional ViewpointWhat managers do:

Plan Organize Lead Control

Contingency ViewpointManagers’ use of other viewpoints to solve problems involving:

External environment Technology Individuals



Quality: how well a product or service does what it is supposed to do—how closely and reliably it satisfies the specifications to which it is built or provided

Total Quality Management (TQM): a philosophy that makes quality values the driving force behind leadership, design, planning, and improvement initiatives



Inputs or raw materials

Operations

Outputs

Measuring by variable or a product’s characteristicsMeasuring by attribute or a product’s acceptable/

unacceptable characteristics

Statistical process controlQuality of a process (e.g., sigma)


Lower Costs and Higher

Market Share

DecreasedProductLiability Quality

PositiveCompany

Image